A major clean fuels hub planned for Shetland has received almost £760,000 in Scottish Government funding as work continues to transform Sullom Voe Terminal into a centre for low carbon fuel production.
Energy Minister Stephen Gethins announced the funding ahead of a visit to the terminal, where Veri Energy is developing plans to produce hydrogen and e methanol from 2030.
The funding will support the third phase of the project, which aims to build on Shetland’s long established energy industry while creating new opportunities in clean fuel manufacturing.
The Scottish Government says the development will help retain and retrain skilled oil and gas workers, support local businesses and strengthen Scotland’s expertise in emerging low carbon technologies.
The hub is also expected to supply e methanol to a proposed sustainable aviation fuel plant at the former refinery site in Grangemouth, linking two key energy projects.
Energy Minister Stephen Gethins said:
“Sullom Voe Terminal is a crucial part of Scotland’s industrial landscape.
“It has been at the heart of Shetland’s economy for many years, providing vital jobs and supporting local businesses, and I welcome the opportunity to tour such a significant site.
“We know it has faced challenges recently because of reduced activity, so it is absolutely correct that we help where we can in order to secure a viable future for its valued workers.
“That is why the Scottish Government is contributing almost £760,000 to support Veri Energy as it continues to develop its ambitious plans for a clean fuels hub.
“We need an approach to our energy future that sees us manage oil and gas activity while seizing the opportunities that come from increasing the deployment of new technologies and fuel sources.
“Our renewables revolution has been two decades in the making, and the economic opportunities from what comes next could be transformational.
“That transformation needs to benefit communities right across Scotland, delivering jobs, energy security and growth.
“Shetland and our island communities have a vital role to play in this process.
“Shetland has been a vital part of Europe’s security for decades and will continue to be for decades to come.”
Veri Energy Chief Executive Gavin Templeton said:
“This support from the Scottish Government is a strong endorsement of the strategic opportunity at Sullom Voe.
“Our clean fuels hub has the potential to transform nationally significant existing energy infrastructure into a platform for the production of e-fuel at scale, creating long term economic value for Shetland and contributing to Scotland’s net zero ambitions.
“The project will build on the skills, experience and industrial heritage of the region while helping establish a new centre of expertise in clean fuels manufacturing.
“We continue to engage and work with the SVT owners and are excited to take this next step and to work with stakeholders across Scotland to realise the full potential of the opportunity.”
The project forms part of wider efforts to diversify Scotland’s energy sector, using existing industrial infrastructure and workforce skills to support the transition towards cleaner fuels while creating long term employment opportunities in Shetland.
